Copyright Course Technology 1999 1 Chapter 13: Planning

Copyright Course Technology 1999

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Chapter 13:Planning


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What is Involved in Project Planning?Planning is often the most difficult and

most unappreciated process in project management

Many people have a negative view of planning because they do not use plans to facilitate action

The main purpose of project plans is to guide execution

Every knowledge area includes planning


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Table 13-1. Planning Processes and OutputsKnowledge Area Process Outputs

Integration Project Plan Development Project PlanSupporting Detail

Scope Scope Planning Scope StatementSupporting DetailScope Management Plan

Scope Definition WBSTime Activity Definition Activity List

Supporting DetailWBS Updates

Activity Sequencing Project Network DiagramActivity List Updates

Activity Duration Estimating Activity Duration EstimatesBasis of EstimatesActivity List Updates

Schedule Development Project ScheduleSupporting DetailSchedule Management PlanResource Requirement Updates

Cost Resource Planning Resource RequirementsCost Estimating Cost Estimates

Supporting DetailCost Management Plan

Cost Budgeting Cost BaselineQuality Quality Planning Quality Management Plan

Operational DefinitionsChecklistsInputs to Other Processes


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Table 13-1. Planning Processes and OutputsKnowledge Area Process Outputs

Human Resources Organizational Planning Role and ResponsibilityAssignmentsStaffing Management PlanOrganizational ChartSupporting Detail

Staff Acquisition Project Staff AssignedProject Team Directory

Communications Communications Planning Communications ManagementPlan

Risk Risk Identification Sources of RiskPotential Risk EventsRisk SymptomsInputs to Other Processes

Risk Quantification Opportunities to Pursue, Threatsto Respond toOpportunities to Ignore, Threats toAccepts

Risk Response Development Risk Management PlanInputs to Other Processescontingency PlansReservesContractual Agreements

Procurement Procurement Planning Procurement Management PlanStatement of Work

Solicitation Planning Procurement DocumentsEvaluation CriteriaStatement of Work Updates


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Developing the Project Plans

The ResNet beta project plan was successful due to planning at a fairly high level, getting strong user involvement, and developing solid measurement tools

The ResNet 1995 and 1996 plans were more detailed and focused on key milestones needed to install the 3,000 PCs and develop new software


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What Went Right?

The PR-2 for the ResNet 1996 project included performance results from implementing ResNet in Baltimore in 1995. Because the project team developed measurement tools and used them on the ResNet 1995 project, they had a strong business case for justifying further investments in the ResNet 1996 project. The call handle time actual results in Baltimore showed a 6.7 percent improvement after implementing ResNet, and the percentage of direct ticket sales increased from 3.2 percent to 7.5 percent. This increase in direct sales translated to over $15 million in profits that ResNet generated in 1995 alone.


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Determining Project Scope and SchedulesPeeter and the ResNet team clearly

defined the scope of each projectThey focused on meeting key

milestones, one at a timeNWA did use Microsoft Project to

create Gantt charts, but they did not link any tasks or enter actuals

The ResNet team did not miss any milestone dates!


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Table 13-2. Planned Software Development and Office Implementation Milestones

Software Development Milestone Date Office Implementation Milestone DateInternational sales in production 10/95 Minneapolis/St. Paul (MSP)

international desk complete10/95

WorldPerks in production 3/96 New York City (NYC) and Detroit(DTT) facilities ready

12/95

Specialty and support deskproduction rollout

8/96-12/96 WorldPerks office rollout 3/96-12/96

Sales Action Center in production 12/96 National/International sales officescomplete

11/96

Specialty sales/support deskscomplete

12/96


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Figure 13-1. ResNet 1996 Application Development Gantt Chart

Project 98 file


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Figure 13-2. ResNet 1996 Level 2 WBS for Office Implementations

1 .1 P h ase 1 :P re -Im p lem en ta tion

P rep ara tion

1 .2 P h ase 2 :In fras tru c tu re

Im p lem en ta tion

1 .3 P h ase 3 :C h an g e

M an ag em en t

1 .4 P h ase 4 :A g en t C on vers ion

1 .5 P h ase 5 :A ch ieve

O ffice G oa ls

1 .0 O ffice 1N ew Y ork C ity

(N Y C )

2 .0 O ffice 2Iron R an g e R eserva-tion s C en te r (IR R C )

3 .0 O ffice 3D etro it (D TT)

4 .0 O ffice 4M in n eap o lis /S t. P au l

(M S P )

5 .0 O ffice 5S eattle(S E A )

6 .0 O ffice 6H on o lu lu

(H N L )

7 .0 O ffice 7L os A n g e les

(L A X )

8 .1 F A X Tes tin g /C ertifica tion

8 .2 D eve lop erIm p lem en ta tion

8 .3 P re -In s ta lla tionTask

8 .4 W ord P rocess in gIm p lem en ta tion

(W ord /F A X )

8 .5 S p ec ia lty D eskIm p lem en ta tion

8 .0 F A X

9 .1 F in a lizeR eq u irem en t

9 .2 F u n c tion a lA n a lys is

9 .3 C u s tom erC orresp on d en ce R e-

p lacem en t D es ig n

9 .4 R esN etA p p lica tion

D es ig n

9 .5 U serP roced u res

an d Tra in in g

9 .6 P rog ram m in gan d

U n it Tes tin g

9 .7 S ys tem Tes t

9 .8 Im p lem en ta tion

9 .9 P os tIm p lem en ta tion

A u d it

9 .0 R esD oc

1 0 .1 B eta Tes t -M S P

1 0 .2 A lp h a Tes tH ib b in g (H IB )

1 0 .3 P rod u c tionS ys tem in H ib b in g

1 0 .0 C om p u te rTe lep h on y

In teg ra tion (C TI)

R esN et 1 9 9 6


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What Went Wrong?There was a lot of political pressure related to the Iron Range Reservations Center (IRRC) in Hibbing, Minnesota. The state of Minnesota funded a large portion of this office, which was the central point for handling the WorldPerks system. The WorldPerks implementation date of March 31, 1996 was firm. The ResNet team was a little overconfident in their planning, and several problems developed. WorldPerks involved a new communications protocol, and the ResNet team did not plan enough time up-front to analyze all of the system requirements. They expedited testing, and there were several quality problems that were difficult to resolve because of a lack of precision in planning.


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Figure 13-3. ResNet 1996 Office Implementation Plan

Project 98 file


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ResNet Cost EstimatesPeeter, Arvid, and other project

members developed cost estimatesThey used vendor quotes for

estimating hardware, software, and network equipment

They estimated internal labor costs based on the number of people needed from various departments and the labor cost per hour for those employees


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Table 13-3. Maximum Departmental Headcounts by Year

Department 1994 1995 1996 1997 1998 TotalsInformation Systems 24 31 35 13 13 116Marketing systems 3 3 3 3 3 15Reservations 12 29 33 9 7 90Contractors 2 3 1 0 0 6 Totals 41 66 72 25 23 227


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Table 13-4. Summary of ResNet Total Life Cycle Costs

1994 ($) 1995 ($) 1996 ($) 1997 ($) 1998 ($) 1999 ($) Total ($)Computer equipment 325,779 4,337,036 8,487,495 - - - 13,150,310Facilities/buildings - 974,372 1,072,969 - - - 2,047,341Software 563,627 2,517,590 1,704,575 - - 4,785,792 Total one-time capitalexpenditures

889,406 7,828,998 11,265,039 - - - 19,983,443

Capitalized labor one-timecosts

88,627 1,589,191 1,704,575 3,382,393

One-time labor costs 38,040 748,267 1,265,323 60,000 2,111,630On-going operating labor 108,675 1,101,809 3,150,414 2,787,984 2,710,982 2,710,981 12,570,845 Total labor andconsultant costs

235,342 3,439,267 6,120,312 2,847,984 2,710,982 2,710,981 18,064,868

Recurring computerequipment

- 601,249 559,794 805,549 829,715 854,607 3,650,914

Recurringfacilities/buildings

- 6,100 41,610 42,858 44,144 45,468 180,180

Recurring software - - 162,050 206,912 213,119 219,512 801,593 Total recurring expenses - 607,349 763,454 1,055,319 1,086,978 1,119,587 4,632,687TOTAL COSTS 1,124,748 11,875,614 18,148,805 3,903,303 3,797,960 3,830,568 42,680,998


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Human Resources and Communications PlanningPeeter was good at motivating people

and providing strong communications with project stakeholders

The ResNet team used informal and formal networking and plans


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Table 13-5. ResNet Staffing Plan (in person-months)Department 1994 1995 1996 1997 1998 TotalsInformation Systems Application Development (IE) 4 12 6 0 0 22 Application Development (IS) 30 135 86 0 0 251 WorldPerks Service Cener Application Development (IS) 0 15 5 0 0 20 Network Operations and Development 20 60 10 0 0 90 Network and Systems Support 30 96 96 96 96 414 Marketing Application Management 4 12 12 12 12 52 Application Support 0 6 36 48 48 138Total Information Systems Department 88 336 251 156 156 987Marketing Systems Project Analyst 4 12 12 12 12 52 Application Developmnet (IE) 4 12 12 12 12 52 Administrative Assistant 4 12 12 12 12 52Total Marketing Systems Department 12 36 36 36 36 156Reservations Department Application Development (Reservations Agents) 20 87 42 0 0 149 Alpha Testers (Reservations Agents) 0 24 12 0 0 36 WoldPerks Service Center Application Development 16 44 0 0 0 60 Sales Action Center Application Development 0 4 18 0 0 22 Change Management Analyst 4 12 12 12 12 52 Training and Awareness (Reservations Agents) 8 24 6 0 0 38 Support/Maintenance (Reservations Agents) 0 27 106 96 72 301 ResNet Hotline (Reservations Agents) 0 60 30 0 0 90Total Reservations Department 48 282 226 108 84 748Contractors Application Design and Development (Sabre) 3 18 6 0 0 27 ResNet Distributed System Implementation Support 4 4 0 0 0 8Total Contractors 7 22 6 0 0 35

Grand Total Person-Months (Including Contractors) 155 676 519 300 276 1926


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Figure 13-4. ResNet Project Organization Chart

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Joan CharnasMktg & Cust Svc

Director

Lori ManeckeReservations

Appl Mgr

Arvid LeeIS ResNet

Project Mgr

Norm RennerSystem SW

Director

Mike CameronDistributed

Sys Manager

Randy PoolSys SW Splst

Michael Besch

Tom Vande HeiNtwk ResDirector

Ron VycitalNetwork Dev

Manager

Jim CampbellNR ResNetProject Mgr

NetworkServices

Paul Battaglia (NYC)Larry BuesgensDiane CornwellTodd Grimm (SEA)Teresa HendershottFrank Kluge (HQA)Roy Knapp (BWI)Mark Kummer (DTT)Keith Long (LAX)Alan Millar (TPA)Dean Oines (CHIS)Mark Sparks (MSP)Keith StruckDave Vesper (TPA)

Network Development

Mike FulkersonLiani LeeSteve MuenchDoug Smart

NetworkOperations

Rich PetersonGeorge Sandmeyer (MSP)Dave Timp

Dennis HalloranSystems Res.

Director

Amy WagesHelp Desk Manager

Merle BaldusHelp Desk

Analyst

Mike AnensonCecily JohnsonKim KuppenbenderRuby Madison

Peeter KivestuResNet Proj

Director

Mona DassResNet TL

Dave HopperstadResNet TL

Jim FosterProj Control

Analyst

Tom AtzNancy Hansen

Hugh PlappertDirk ViskerMin Zhuang

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Bob DufekPlng & Support

Director

Tam RathProd Sys Sup

Manager

Joe SantosInfo Center

Manager

Ken BietzESD

Sandy HartChange Mgmt

Israel HillLevel 4 Comp

Mike PowersMS OfficeTraining

Sue BromenCyndi GustKaye Hayes

Jim Kath

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Kathy KrammerResNet ApplDevelopment

Nancy StrobelResNet ChgManagement

Dan NewstromOperationsResearch

Randy Pemberton

Project Specialist


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ResNet CommunicationsMost of the people assigned to ResNet

were full-time, making communications easier

The ResNet team created templates for communicating project information like weekly and monthly status reports

They set up a shared network drive for all project information

They held regular meetings for various team members and stakeholders


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Quality, Risk, and Procurement PlanningThe PR2 included some information related

to quality, risk, and procurement planningThe measurement techniques for tracking

call handling time and number of direct sales closes were critical elements in assessing quality

NWA used past experience in dealing with vendors

NWA managed risk by following expert advice and having strong user involvement


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Discussion QuestionsDiscuss Peeter's request for Arvid to create a plan for the

beta ResNet project in one week. How would you react to this request? Is it realistic to take only one week to plan a project that will last more than a year? How do you think Peeter made this request since Arvid responded so well?

Review the Gantt charts for ResNet 1996 application development and office implementation. Why do you think these were created as two separate Gantt charts? Why do you think the project team did not link activities in Microsoft Project? Do you think linking activities in project management software is done often on real projects? Why or why not?

Review the WBSs and cost estimates provided. Discuss any questions you might have about them